Starbucks (2)

Further to the previous post, it seems the "We're-too-sophisticated-for-Starbucks" meme has spread to Auckland. Local leading left-liberal blogger, Russell Brown has written:

"On a related tip, will the shoe drop here too, after Starbucks' decision to close 61 of 84 stores in Australia? I was quite surprised to discover that we have more than 40 Starbucks outlets here. As the Financial Times put it:

The chain has been the victim of an ill-fated push in Australia, a market it only entered in 2000.

Starbucks was snubbed by many Australians, who have grown up on a diet of quality European-style coffee introduced in the last century to Australia by immigrants, especially from Italy.

It's interesting to see how differently Starbucks' present global difficulties can be viewed. US author Bryant Simon contends that Starbucks "sold not coffee but elevated status", and that had been a key to its consumer appeal.

Not here it wasn't: Starbucks has never been cool in New Zealand, except perhaps to kids who should really still have been drinking milkshakes. It might play its role in more meagre coffee markets, but here it's strictly for dorks and tourists."

Hmmmm. Again it looks like a lot of people want to read this event in a certain way. Again, we are sceptical that the same Australasian publics who have thoroughly embraced any number of fast food chains of questionable culinary merit, have somehow drawn a line at Starbucks.

Yes, it is possible, but is it really that plausible? Especially considering that there are still a lot of other mediocre coffee outlets out there that do not happen to be Starbucks, and which don't seem to be going away any time soon through mass consumer rejection.

Brown's comments on status and "dorks" are telling. We suspect that "dorks" - understood here as unfashionable people, generally living and working in unfashionable places beyond inner city suburbs - are a much larger market than Brown gives credit to, and who would be more than capable of supporting the few dozen Starbucks, (let alone all the Gloria Jeans, etc.) outlets across Australia and New Zealand. In short, this is probably not about demand, but rather supply, and short-term head office strategy.

We could be wrong, but we think this episode all says much more about the self-image and practices of a certain broad milieu of journalists, rather than the discernment or consciousness of most consumers.